Park City, Utah (PRWEB) August 19, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on health insurance broker exiting.
According to Zane Benefits’ website, nearly half of U.S. health insurance brokers are considering exiting the health insurance business altogether, with the majority saying they're only slightly or not at all confident about the future of their business and their industry.
The 2013 Aflac WorkForces Report for Brokers reflects a common feeling among insurance brokers that they're taking the brunt of changes in America's healthcare system.
One reason for this shift in attitude is that group health insurance is undergoing a drastic shift with new structural changes brought on by health care reform. In addition, costs for employer-sponsored group health insurance are at an all-time high for employers and employees. Brokers feel the closing of the group health insurance market, and it’s a threat to their current business model.
In a recent look at brokers' views on health care reform, 72 percent said health care reform would make the country worse off, and 65 percent said it would make their business worse off. In general, brokers are not happy with the health care reform.
These recent studies around brokers exiting the industry, and the future of health insurance brokers, has created a whirlwind of discussion on social media, especially LinkedIn.
But studies aside, are 45 percent of Brokers Really Calling it Quits?
The 2013 Aflac WorkForces Report for Brokers analyzed the trends, attitudes and use of employee benefits, with results derived from online surveys of nearly 1,884 benefits decision-makers, 5,299 workers and more than 300 brokers. The survey found that:
29 percent of brokers are concerned about remaining relevant to their clients.
62 percent named "rising health care costs impacting client decisions on benefits" as the most important issue for their insurance business right now.
Only 15 percent of brokers say they are completely confident in the future of their insurance business and the industry.
However, all the changes surrounding health care reform, is a huge opportunity for those brokers who are willing to adapt. Employers need brokers now more than ever to help understand health reform and navigate new health insurance options. Brokers who are familiar with health reform, defined contribution health plans, consumer-driven options, and wellness programs are going to have a leg up in the new markets that are developing.
The need to adapt was reflected in Zywave’s 2013 Broker Services Survey that found a widening gap between what employers expect of their broker, and what brokers are delivering. The report surveyed 5,500 employers nationwide and identified that employers look for these top five features when selecting an employee benefits broker:
1. Managing health care costs
2. Keeping in compliance and up to date on changing legislation, including health care reform
3. Benefits administration and employee benefits education
4. Keeping up to date on regulatory changes
5. Controlling workers’ compensation costs and managing exposures
One of the ways brokers nationally are adapting to the market changes, and actually profiting from the market changes, is by adding defined contribution health care to their offerings. For brokers, defined contribution health care offers a solution to increase individual health insurance policy sales and retain clients who are canceling group health insurance.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. The flagship software provides a 100 percent paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.